Early Times ReportSrinagar, Mar 20: The state government is said to have initiated a probe into an alleged multi-lakh scam in a municipal committee of Srinagar. Based on the outcome of the probe, government would be taking action against the tainted executive officer (EO), who, according to official sources, had allegedly allotted a Rs 50 lakh contract of chungi (tax collection point) in the town to a blue-eyed contractor in violation of norms.The EO, in violation of the set government norms, had allotted the tax collection posts to the contractor against the bid of Rs 1.02 cr for 10 months without signing any required government agreement with him. There was no mention of time period, style of working, rate schedule and modes of payment in the contract, sources alleged. As already reported by Early Times, the contractor was initially allotted the chungis without depositing the bid money, but when the word about the nexus between the CEO and the contractor spread in the area and in the ULB directorate, the contractor agreed to pay mandatory bid amount of Rs 1.2 cr in installments. Due to official patronage, the influential contractor deposited only Rs 44 lakh in three installments and then refused to pay remaining Rs 58 lakh, sources alleged.The tainted EO was now transferred to another municipal committee. He was also alleged to have made backdoor appointments in the department. Sources said the authorities concerned had initiated a probe against into the alleged scam.